VSP Will Not Be Privatised, Says Vizag MLAs And MP
Telugu Desam president Palla Srinivas has said the Visakhapatnam Steel Plant will not be privatised as long as the NDA government is in power.
By : DC Correspondent
Update: 2025-08-26 16:37 GMT
Visakhapatnam: The Telugu Desam president Palla Srinivas has said the Visakhapatnam Steel Plant will not be privatised as long as the NDA government is in power.
He referred to the 1989–90 liberalization period, when a policy was introduced to privatize government institutions that ran in loss. However, “Union minister of state Bhupathi Raju Srinivasa Varma's clarifications in Parliament were nothing but a policy statement. It does not apply to the Vizag Steel Plant,” he claimed.
Srinivas stated that although the central government’s policy allows for the privatization of loss-making units, state governments had successfully intervened in the past. He cited the Salem Steel Plant in Tamil Nadu, where the state government stopped its privatization.
“Just as Tamil Nadu protected Salem, we will protect Vizag Steel,” he asserted.
Srinivas criticised the YSRC government, stating that the plant was running at only 20 per cent capacity under their rule. “Now, with `14,000 crore allocated by the central government, the plant is on the path to revival.”
He claimed that this funding reflected the NDA’s commitment to keeping the plant in the public sector as was promised during the elections.
Vizag MP, M. Sribharat, held a breakfast meeting with local MLAs to discuss his efforts in Delhi, especially with Union ministers, to support development in Visakhapatnam. At the press conference that followed, Srinivas stressed that the steel plant must operate at full capacity to avoid privatization.
“Both blast furnaces should run at full strength. If the plant reaches 60 per cent capacity and stays profitable for two years, privatization would not be considered,” he said.
He also spoke of the plant’s financial challenges. “The monthly salary bill stands at `240 crore. To manage this, the plant is undergoing internal restructuring. Currently, around 700 to 1,000 contractors employ approximately 15,000 contract workers. These contractors have been reorganised into 32 departments by the CMD. This is not privatization. It’s a step to improve efficiency.”
Job security remains a key concern. Palla noted that 8,000 local workers depended on the plant for employment. “We do not want anyone to lose their job. Some 300 workers were laid off. We are fighting for their reinstatement,” he said.
Sribharat also dismissed rumours of privatisation, especially after the central government’s extension of financial support. “I met heavy Union industries minister H.D. Kumaraswamy thrice and sought appointment of a permanent CMD and board of directors. “Stable leadership will help the plant grow stronger,” he said.
Sribharat assured the workers that layoffs would not continue and that the plant would be made profitable.
Srinivas stated that although the central government’s policy allows for the privatization of loss-making units, state governments had successfully intervened in the past. He cited the Salem Steel Plant in Tamil Nadu, where the state government stopped its privatization.
“Just as Tamil Nadu protected Salem, we will protect Vizag Steel,” he asserted.
Srinivas criticised the YSRC government, stating that the plant was running at only 20 per cent capacity under their rule. “Now, with `14,000 crore allocated by the central government, the plant is on the path to revival.”
He claimed that this funding reflected the NDA’s commitment to keeping the plant in the public sector as was promised during the elections.
Vizag MP, M. Sribharat, held a breakfast meeting with local MLAs to discuss his efforts in Delhi, especially with Union ministers, to support development in Visakhapatnam. At the press conference that followed, Srinivas stressed that the steel plant must operate at full capacity to avoid privatization.
“Both blast furnaces should run at full strength. If the plant reaches 60 per cent capacity and stays profitable for two years, privatization would not be considered,” he said.
He also spoke of the plant’s financial challenges. “The monthly salary bill stands at `240 crore. To manage this, the plant is undergoing internal restructuring. Currently, around 700 to 1,000 contractors employ approximately 15,000 contract workers. These contractors have been reorganised into 32 departments by the CMD. This is not privatization. It’s a step to improve efficiency.”
Job security remains a key concern. Palla noted that 8,000 local workers depended on the plant for employment. “We do not want anyone to lose their job. Some 300 workers were laid off. We are fighting for their reinstatement,” he said.
Sribharat also dismissed rumours of privatisation, especially after the central government’s extension of financial support. “I met heavy Union industries minister H.D. Kumaraswamy thrice and sought appointment of a permanent CMD and board of directors. “Stable leadership will help the plant grow stronger,” he said.
Sribharat assured the workers that layoffs would not continue and that the plant would be made profitable.